Must reads

Finance secretary: “Any expenditure by a person in a five star hotel above Rs 5,000 have to be settled using credit card.” So, you have to be KYC compliant to eat at a restaurant in India. #FML (TOI)

Now, the RBI Governor will have to explain failure if inflation targets are not met. (ET)

Media coverage influences investor behavior in a way that exacerbates behavioral biases, such as chasing recent performance. So it seems that mutual funds have been correct to engage in the well-documented behavior of “window dressing.” Window dressing is when funds buy recent winners just before reporting dates because they believe investors will assume the fund was skillful in identifying the past winners ex-ante. (ETF, #fund)

Must reads

Indian Railways is in talks with Life Insurance Corporation of India (LIC) to devise a mechanism to deploy Rs.1 trillion of its surplus funds into railway infrastructure over a period of five year. (LiveMint)

Thoughts to sum up the month

A business with terrific economics can be a bad investment if it is bought for too high a price. In other words, a sound investment can morph into a rash speculation if it is bought at an elevated price.

Thought for the weekend

We live in a world awash with information, but we seem to face a growing scarcity of wisdom. And what’s worse, we confuse the two. We believe that having access to more information produces more knowledge, which results in more wisdom. But, if anything, the opposite is true — more and more information without the proper context and interpretation only muddles our understanding of the world rather than enriching it.